Africa Economy - March 2016

Source: OPEC 4/12/2016, Location: Africa

In South Africa, GDP expanded by 0.6% y-o-y in the 4Q15, down from 1.0% in the 3Q15. For the full year 2015, growth stood at 1.3% y-o-y, the lowest level since 2009. Mining and construction activities were in decline, while the agricultural and finance sectors also decelerated. The manufacturing PMI reading on business conditions in February also sent a negative signal. The survey showed steep declines in both production and new orders. The index posted 49.1 last month, down from 49.6 in January.

Inflation in Egypt increased by 10.7% y-o-y in January, falling from Decemberís 11.9%, its highest reading in 17 months. In February, business conditions in the non-oil private sector worsened for the fifth consecutive month with the PMI posting 48.1, compared to 48.0 in January. However, the decline in output, as well as new orders from the domestic market and new export orders, were all slower than the previous month. The survey also showed that the depreciation in the Egyptian pound pushed input costs up last month.